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What Is ‘Assignment Risk’ for an Option Writer?

The risk that the option writer is forced to fulfill their obligation to buy or sell the underlying asset at the strike price.
Greeks.Live23.11.25

What Is ‘Assignment Risk’ for an Option Writer?

Assignment risk is the possibility that the option writer will be called upon by the clearing house or counterparty to fulfill their contractual obligation ▴ to buy or sell the underlying asset at the strike price. For American options, this risk is present at any time up to expiration, making it a continuous and unpredictable risk for the writer.

What Is the Procedure for a Broker Handling an Assignment Notice?
What Is the Risk of Early Exercise for the Writer of an American Option?
How Does the Concept of ‘Assignment Risk’ Relate to the Option Writer’s Position?
How Can a Call Option Writer Close Their Position to Avoid Assignment?

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